Page 155 - How to Make Money in Stocks Trilogy
P. 155

74
         A WINNING SYSTEM
          Price
                  140
              190
                    120
                160
                      100
            220
                         80
             S&P 500
                n
                n
                n
                Market correction
                Market correction
                t
                r
                k
                M
                           Buy: Third base formed is now  !  y! Very Important t Do Not Buy tt Do Nt Bu  o  I I  V  70  y  Buy  y  Buy It’s a 3rd stage base It s a 3rd stage base  s Buy: Third base formed is now  w  m tighter, corrected less from high  g  g  s  r  60 to low, handle is in upper-half of  u  n base an
                            g
                                 w
                           B
                               b
                              t
                                t
                            t
                                    e  e  e                          Jun 1989
                          History repeats itself. Qualcomm (page 94) later did  g  (  lc  Q  lf  it same thing in Jan. 1999 when 1st base was loose 1999 when 1st base was loose  s  h  n and wrong, 2nd base was wrong and then 3rd time and wrong, 2nd base was wrong and then 3rd time  w  b it tightened up and formed c
                          did  94) l  o  t  o  Historical  o  Do Not Buy! Second Do Not Buy! Second  o base faulty, most of price  p  t  y work on handle in lower   n half of base, 200-day line  day line  200-  Mar 1989 Dec 1988
           Microsoft–1989  Weekly Chart  y  Hi  same thing in Jan  h  o  e  9  Jan  e  N  D  D  D  a  a  o  (1  2/1  Mar 1988 Dec 1987 Sep 1987
          Price =  20*eps  10   9.00     8.00   7.50      7.00    6.50     6.00     5.50     5.00    4.50     4.00    3.50    3.00     2.50     2.25    2.00     1.80     1.60   1.50      1.40    1.30    1.20    1.10    1.00    0.90    0.80    0.75    0.70    0.65    0.60    0.55    0.50    0.45    0.40    0.35
   150   151   152   153   154   155   156   157   158   159   160